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Higher food prices due to flood rains likely to affect inflation

Higher food prices triggered by the recent flood rains are likely to affect inflation this month and August.
     
The Bank of Jamaica's short-term inflation analysis and forecast, which was released last week, shows that inflation this month is expected to mainly reflect higher prices for food and non-alcoholic beverages as well as transportation.
     
It says this is as a result of an increase in non-processed food due to the impact of the flood rains on food prices and higher petrol rates.
     
Inflation in August is anticipated to primarily reflect increases in food and non-alcoholic beverages as well as housing, water, electricity and gas. This has been linked to expected increases in non-processed food prices and electricity rates.
     
Additionally, the Bank of Jamaica says inflationary impulses should reflect a rise in seasonal demand associated with holidays and back to school preparation.
     
Inflation for the current fiscal year is forecast to fall within the target range of four to six per cent.     


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